Bangkok--26 Jul--Fitch Ratings
Fitch Ratings (Thailand) Limited has assigned IRPC Public Company Limited’s (IRPC, ‘A-(tha)’/Stable/‘F2(tha)’) upcoming three- and six-year senior unsecured debentures, totaling THB10bn, a National Long-Term rating of ‘A-(tha)’. The proceeds will be used to refinance debt and fund future capex.
IRPC’s ratings are underpinned by its competitive advantage as a fully integrated oil refining and petrochemicals producer, and its expertise and long track record in downstream petrochemical products in Thailand. IRPC benefits from cost savings gained through cooperation with PTT Public Company Limited (‘AAA(tha)’/Stable), its largest shareholder (39%), especially on procurement of feedstock and product swaps.
IRPC’s credit profile is constrained by its vulnerability to oil prices, volatile refining margins and petrochemical prices. The ratings also take into account the company’s aggressive investment plan, and its reliance on exports due to Thailand’s excess capacity in polymers (about 58% of the country’s production was exported in 2011). Furthermore, IRPC is exposed to supply risks associated with crude oil, as Thailand is highly dependent on imported oil.